Reputational risks can surface overnight, putting any brand in the spotlight for the wrong reasons. Without a solid crisis communication plan, a minor issue can quickly spiral out of control.
Whether you’re putting out fires due to a product recall or a data breach, you need a reliable response plan to protect your client’s reputation.
Let’s talk about some of the types of reputational risks your clients might face—and what to do if they happen. We’ll also discuss some ways you can help brands get ahead of reputation management.
Examples of reputational risks (and how to manage them if your client is in the line of fire)
Reputational risks are diverse and can affect every part of a business. Here’s a look at common crisis scenarios, why they happen, and actionable solutions for each.
Potential crisis scenario: Product safety issue
A product safety issue can lead to immediate reputational damage, potential lawsuits, and loss of customer trust.
Solution: Initiate a product recall. Get clear, immediate communication out there via media outlets, email, and social media. Include a simple statement explaining the recall and easy-to-follow return instructions. Also, note that safety improvements are being made to make customers feel safe. Bring in business leaders and customer support teams to make sure everyone understands the plan.
Keep customers updated as the recall progresses to demonstrate transparency and accountability.
Potential crisis scenario: Cybersecurity breach with customer data
A data leak involving sensitive customer information is a severe crisis. Data breaches harm customer trust and expose companies to regulatory penalties and lawsuits.
Solution: Use a tool like Dynamics 365 Customer Engagement to track and address any concerns instantly. Dynamics 365 uses artificial intelligence to find negative sentiment trends on social media. It also talks to concerned customers directly through live chat. This helps keep customers informed in real time—and shows that you’re actively handling the issue.
Set up secure channels to update affected customers and offer guidance on how they can protect their information.
Potential crisis scenario: Service interruptions or extended downtime
If your client’s website is down for a prolonged period, it can frustrate customers and lead to potential reputational harm. (Especially for tech or SaaS companies that rely on uptime.)
Solution: Use a status page, like Instatus, to keep customers informed with real-time updates during outages.
This gives customers a place to check for information instead of flooding your customer support team. Status pages also show that your client is in charge of the situation and committed to fixing it quickly.
Potential crisis scenario: Branding lawsuit for alleged plagiarism
Competitors may sometimes accuse a brand of copying its branding materials. This can spark mistrust among its audience if word gets out.
Solution: When faced with a branding lawsuit, legal and PR teams need to collaborate. Issue a public statement that asserts the company’s position and emphasizes its unique value. Provide proof, if possible, to clarify originality and avoid public misunderstandings. Internally, use this situation as a learning opportunity to revisit brand guidelines to make sure they’re unique and legally sound.
Potential crisis scenario: Misleading promises misaligned with company values
If a company’s promises or operations don’t align with its stated values, the public might perceive it as dishonest or hypocritical. For instance, if the brand claims to be eco-friendly but uses sourcing practices that aren’t sustainable, this can raise a red flag.
Solution: Address the gap directly. Issue a statement explaining any disconnect between the promise and actual practice. This may include adjusting policies or improving transparency. Or implementing changes that demonstrate a renewed commitment to integrity. For instance, swapping their current suppliers for more ethical and sustainable sourcing options.
Potential crisis scenario: Unfair wages or employee lawsuits
Issues related to employee treatment, such as low wages or unfair policies, can spark public backlash and lead to legal challenges.
Solution: Be honest about how your company values its employees and tell people about any upcoming policy changes, if needed. Invite employees to provide feedback and take it seriously.
Consider conducting an internal audit to evaluate current policies. Then address any gaps or grievances to improve work culture. Publicly sharing these efforts can help show accountability and commitment to a fair, supportive workplace.
How to get ahead of reputational risks with proactive crisis communication strategies
Preparing for reputational risks before they happen can minimize damage when a crisis arises.
Here’s how to get ready in the pre-crisis phase.
1) Create an effective crisis communication plan
Create a crisis communication plan that outlines:
- Messaging specifics for each stakeholder
- How often to provide updates
- Who to notify
Follow these steps to create your plan:
- Identify stakeholders. Determine which business leaders, partners, customers, and other key contacts need updates.
- Set up a notification system. Establish a process for issuing regular updates. For example, a monthly or quarterly update can keep stakeholders informed, even if no crisis has occurred.
- Gather supporting materials. Pre-create resources. For instance, a healthcare company facing public scrutiny might leverage health statistics to demonstrate the efficacy of its products. This approach can calm public concerns and strengthen trust in the organization.
2) Prepare a list of trusted crisis response strategies
Having a list of crisis response strategies is invaluable when your client’s reputation is on the line.
Here are some to consider:
- Conduct an internal audit. Identify and resolve any underlying issues that could worsen the crisis. For example, if a data leak happens, audit security measures and strengthen weak points.
- Use influencers and brand advocates. Collaborate with advocates who can help shift public perception by voicing support and sharing positive messages.
- Vendor/partner crisis communication. Inform your client’s partners and vendors of any disruptions so they’re prepared for any fallout.
- Customer crisis communication. Keep customers in the loop with honest, clear updates about any potential impacts on them.
- Social media crisis communication. Address public sentiment quickly by responding directly to social media inquiries.
3) Build a dedicated crisis management team
Your crisis management team is crucial to an effective response — so choose members carefully. Ideally, you want a team with experience in crisis communications.
Consider these factors:
- Past crisis management experience. Ask if potential team members have created or executed a comprehensive crisis communication plan.
- Their crisis management process. Clarify how they approach different crisis scenarios and evaluate past outcomes.
- Awareness of potential crises. Gauge their understanding of specific risks a company may face.
Choosing the right team keeps you ready for any crisis situation.
Wrap up
Managing reputational risks means being prepared for anything — from product recalls to data breaches. With a proactive crisis communication plan, you can tackle these challenges head-on and maintain trust.
Create a dedicated team, prepare clear messaging, and stay agile on social media so you can respond quickly and thoughtfully in a crisis.
While reputational risks are sometimes unavoidable, the right strategies can guide your clients through any storm so they can emerge stronger.
PS: Looking for more helpful PR guides? Check out our resources.
FAQs
What is crisis communication, and why is it important?
Crisis communication is a plan for handling information and messaging during a crisis. It’s important because it protects your client’s reputation, keeps everyone informed, and helps build trust.
With the proper communication, you can reduce confusion, avoid rumors, and support a faster recovery.
What are the main components of a crisis communication plan?
A solid crisis communication plan should clearly outline everyone’s roles and list key stakeholders. It should also include pre-made messaging templates and explain how to reach each audience.
How does social media impact crisis communication?
Social media is huge for crisis communication because it lets you respond in real-time and reach people instantly.
It’s often where people go first for updates, so using it well can help you control the story and address concerns right away.
What is the role of a crisis management team?
A crisis management team leads the response during a crisis.
They assess the situation, make key decisions, coordinate communication, and manage the overall response. It usually has PR experts, lawyers, and department leaders who each have special skills to handle different parts of the crisis.
How can companies prepare for potential crises?
Identify possible crisis scenarios, regularly assess risks, and have a crisis communication plan in place. Organizations should also train their crisis teams and make sure they have quick access to important resources, like media contacts and communication tools, so they can act fast.
What are examples of effective crisis communication strategies?
Good strategies include quickly acknowledging the issue, giving precise information on what happened and what you’re doing about it, and regularly updating people.
Social media can be great for quick updates—while brand advocates and data can help support your response and rebuild trust.
How can a crisis communication plan help build trust?
A crisis communication plan builds trust by showing you’re prepared to handle challenging situations responsibly.
When people see that you’re honest, fast to respond, and follow through on your word, it strengthens trust and helps protect your reputation over time.
What are some common mistakes in crisis communication?
Some common mistakes include delaying your response, being vague or inaccurate, ignoring specific stakeholders, or failing to provide updates. Not having a solid plan or a well-prepared crisis team can also lead to errors that hurt trust and drag out the crisis.
How often should an organization review its crisis communication plan?
It’s a good idea to review your crisis plan every year. Or whenever there’s a significant change, like a new product or leadership shift.
Regular check-ins help keep the plan relevant and make sure everyone knows their role when a crisis hits.
